Introduction
Buying property abroad is often a lifelong dream. Costa Rica—with its lush landscapes, tropical climate, political stability, and renowned quality of life—attracts many foreign investors each year who want to settle down or grow their assets. However, that dream can quickly turn into a nightmare for buyers who are unprepared, uninformed, or poorly advised. While Costa Rica’s real estate market is dynamic and full of opportunities, it is also riddled with legal gray areas, hidden pitfalls, and unscrupulous actors. Finding the perfect ocean-view or jungle-view home is only one part of the journey; securing the purchase legally, fiscally, technically, and ethically is just as important.
In this article, we’ll guide you step by step so you can buy real estate in Costa Rica without getting scammed. With over twenty years of experience in international real estate—especially in Central America—we’ll provide you with all the tools you need to avoid common traps, understand the local market, and make your purchase with peace of mind. We’ll back up our advice with real-life examples, recent data, expert insights, and firsthand investor stories.
Whether you’re considering buying a villa in Tamarindo, a plot of land in Nosara, or an apartment in downtown San José, this guide is for you. In a market as appealing as Costa Rica’s, knowledge is your best shield against unpleasant surprises.
1. Understanding the Costa Rican Real Estate Market
The first step to buying real estate in Costa Rica without getting scammed is understanding how the local market works. Unlike in many Western countries, Costa Rica does not have a centralized, free, and publicly accessible property registry. Property information is recorded at the Registro Nacional, but interpreting this data typically requires the help of a local attorney specialized in real estate law.
Costa Rica’s real estate market is also largely unregulated. Anyone can call themselves a real estate agent, without any training or license. This dramatically increases the risks for buyers. In 2024, according to a study by the Costa Rican Chamber of Real Estate (CCCBR), only 32% of transactions involved a certified agent. Additionally, 18% of surveyed foreign buyers reported legal issues after their purchase.
It’s also essential to understand which regions are in demand and the current pricing trends. For example, in 2023, prices rose by an average of 12% in Guanacaste Province—particularly in Tamarindo, Santa Teresa, and Playa Flamingo. In contrast, the Central Valley (San José, Heredia) saw price stability but remains a safer bet in terms of logistics and legal matters.
Real-life example: A Canadian couple bought land near Dominical in 2022 through a local contact recommended by an expat. After signing, they discovered the land couldn’t be developed due to an unmentioned environmental restriction. Result: over $150,000 in losses.
Expert quote:
“Foreign investors must surround themselves with trusted professionals. Costa Rica offers great opportunities, but due diligence is essential.”
Conclusion: Before signing anything, get informed. Analyze the regions, understand the market’s dynamics, and most importantly, identify trustworthy players.
2. Verifying Property Legality and Ownership Titles
Legal verification is the most critical step in avoiding real estate scams in Costa Rica. Every property must be correctly registered in the Registro Nacional and have a Folio Real Number (similar to a cadastral number). This document includes the property owner’s name, lot size, easements, and any legal encumbrances (such as mortgages or disputes).
It’s highly recommended to hire an independent local attorney (not the seller’s) to conduct a full title search. This professional will verify:
The validity of ownership titles
Absence of mortgages or liens
Environmental restrictions (proximity to protected zones)
Compliance with zoning and municipal plans
Watch out for “concession properties”, especially on the coasts: these are plots within the Maritime Zone (ZMT) and are not truly owned, but leased for renewable 20-year periods. About 85% of beachfront properties in Costa Rica fall into this category. While potentially attractive, they carry significant legal risks—especially for foreign buyers.
Case study: In 2023, a Spanish investor bought a home in Playa Hermosa without verifying the legal documents. After closing, he learned the home was built without permits, on ZMT land, and was under a demolition order.
Key data: According to the Costa Rican Notaries Association (2024), over 22% of real estate disputes involve properties purchased without full title verification.
Expert quote:
“It’s critical to translate and review all documents. Even when things seem simple, one title issue can derail the entire deal.”
Bottom line: Without a clear title and review by an independent lawyer, do not buy. Legal caution is your best protection.
3. Choosing the Right Partners: Agents, Lawyers, Notaries
In a loosely regulated country, your choice of partners determines the success of your purchase. Your real estate agent, lawyer, notary, and project manager (if building) must be chosen with extreme care.
Real estate agents: Prioritize those registered with CCCBR or the National Association of Realtors Costa Rica. Check their references, ask for examples of past transactions, and ensure they understand your goals (residence, investment, short-term rental…).
Lawyers: Ideally, your attorney should be specialized in international real estate law, fluent in English or French, and completely independent from the seller. Expect to pay 1% to 1.5% of the purchase price, which can save you much more in the long run.
Notaries: In Costa Rica, not all attorneys are notaries. Drafting the official deed requires a registered notary who legally validates the transaction.
Best practice: Jean-Luc, a French expat in Escazú, hired Crespo Agency, a firm specializing in helping French-speaking investors. Thanks to their certified network, he safely purchased a home in Santa Teresa—with verified titles, a notarized deed, and a structure optimized for Airbnb rentals.
Recent stat: A 2024 survey by the Central Bank of Costa Rica (BCCR) revealed that 72% of successful foreign transactions involved both an independent attorney and a certified agent.
Expert quote:
“Working with trusted local experts makes all the difference. A strong network is the best safeguard against fraud.”
Your professional team is your safety net. Don’t skimp on their selection or their fees—they’re the key to peace of mind.
4. Securing Financing and Understanding Additional Costs
Another common mistake among foreign buyers is underestimating additional costs or failing to plan for financing. Few local banks offer loans to non-residents without local income or a banking history, so most purchases are done in cash via international wire transfers.
Costs to expect:
Transfer tax: 1.5% of purchase price
Legal and notary fees: 2–2.5%
Registration and stamp fees: ~0.5%
Bank charges (currency exchange, transfers): 0.5–1%
Professional service fees: as negotiated
For a $300,000 purchase, plan on about $20,000 in additional costs.
Real-life example: A Belgian couple made an offer on a house in Tamarindo without budgeting for these costs. At closing, they had to urgently borrow $15,000 at a high interest rate to pay notary fees—putting their entire budget at risk.
Solutions:
Use a secure escrow account (fiduciary service), typically handled by specialized lawyers
Do a full cost simulation with a professional, including all extra fees
Understand the local tax structure: annual property tax (0.25%), capital gains taxes if reselling
Expert quote:
“Buyers must understand that the listed price is never the final price. A detailed estimate is essential.”
Don’t let unexpected expenses ruin your project. A clear understanding of your financial flow is just as crucial as the location of your property.